Economic Impact

An Excerpt from the Study

"While the primary benefit of the Rodeo is the unparalleled entertainment opportunities it provides the region and the large distribution of charitable giving, the Rodeo also provides a bonus economic stimulus to the overall economy that is significant. This stimulus is almost certainly greater than any other sports or arts production in Houston and is comparable to the presence of a major economic base corporation with local employment in excess of 3,000 employees."

Dr. Barton Smith

Summary and Synopsis

An Estimate Based Upon Results of the 2010 Show

Prepared by Barton Smith, Ph.D., Professor of Economics, Emeritus, University of Houston

Download | Economic Impact Study

Because the Show Exists

  • Annual aggregate gross sales are increased by $475,403,000.
  • Annual gross regional product is increased by $320,221,000.
  • Annual personal incomes are raised by $290,710,000.
  • 7,265 full-time equivalent jobs are created.
  • The local population is increased by 16,316 people.
  • Residential capital is changed by $361,877,000.
  • Non-residential capital is changed by $420,125,000.
  • The annual fiscal dividend (tax revenues) to local government is increased by $27,344,000. Expanded over the life of the Show's current 30-year lease at NRG Park, the increase in government revenue is estimated by the Show staff to exceed $820,000,000.

The above results were obtained by utilizing the REMI research model (Regional Economics Modeling Incorporated). The REMI model analyzed $143,760,712 in exogenous spending (from money external to the area) by spectators, contestants, exhibitors, contractors and sponsors at the 2010 Show.

According to Dr. Smith...

“Often local success in attracting relocating firms to Houston with an employment base of 100 new jobs is considered a major achievement, but such successes pale in comparison to the 7,200 permanent full-time equivalent jobs created by the Rodeo.

“Often times, promotional efforts to bring growth to Houston are to help beef up the fiscal health of the community. Once again, the Rodeo comes to the plate swinging grand slams. It is doubtful that there has been any relocation to Houston in recent times that has netted local governments in the region over $27 million annually.

“It should be mentioned that Houstonians themselves find the Rodeo a natural setting to promote the city and its offerings. Thousands invite friends and family from all over the nation to visit and see Houston in its splendor during the wonderful spring weather of Azalea season, and of course, to visit the Rodeo.

“The Rodeo returns more gains to Rodeo attendees in terms of personal income than the typical cost of Rodeo tickets. For those that don’t take advantage of the Rodeo experience, theirs is a free ride, receiving a dividend of increased income.

“Finally, add to all of these impacts the sheer enjoyment most of us Houstonians get from attending and participating in the Rodeo each year, and even with the explicit numbers aside, the Houston Livestock Show and Rodeo comes out a major winner for Houston year after year.”